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Market Analysis: Pennsylvania Ranks in Top 5 Affordable States

By
Real Estate Agent with Keller Williams Main Line See Skills

In the dynamic landscape of real estate, affordability plays a pivotal role in shaping investment decisions. A recent analysis by bestbrokers.com sheds light on the most and least affordable states to buy real estate in the United States, based on the median home price, compared to the average income. Let's delve into the findings and explore the top five most affordable states alongside the five least affordable ones. For each state, the ratio of home price to income is shown in parentheses. As an example, the study shows the median home price in Pennsylvania in 2023 was $271,683 and personal income per capita was $68,133, so the ratio for Pennsylvania is 3.99. (Remember these are statewide averages)

Most Affordable States to Buy Real Estate

1. North Dakota (3.59)
   - With its stable economy and reasonable housing prices, North Dakota emerges as one of the most affordable states for real estate buyers. The state's robust job market and relatively low cost of living make it an attractive option for prospective homeowners.

2. Iowa (3.62)
   - Iowa boasts a healthy real estate market characterized by affordable housing options. Its diverse economy, coupled with a strong sense of community, makes it an appealing destination for those seeking affordable yet quality housing.

3. Illinois (3.75)
   - Despite being home to bustling cities like Chicago, Illinois offers pockets of affordability in its real estate market. Buyers can find value in various regions across the state, benefiting from its amenities, employment opportunities, and cultural attractions.

4. Ohio (3.79)
   - Ohio's real estate market presents a balance between affordability and livability. The state's affordable housing options, coupled with a favorable business environment, make it an enticing choice for both investors and homebuyers.

5. Pennsylvania (3.99)
   - Pennsylvania rounds up the list of most affordable states, offering a range of housing options at competitive prices. Its diverse landscapes, vibrant cities, and historical charm add to its allure for real estate buyers.

Least Affordable States to Buy Real Estate

1. Hawaii (10.83)
   - Known for its breathtaking landscapes and desirable lifestyle, Hawaii tops the list of least affordable states for real estate. The high demand for housing coupled with limited supply contributes to steep property prices across the islands.

2. California (9.47)
   - California's allure is undeniable, but its real estate market is notoriously competitive and expensive. From Silicon Valley to coastal cities, California's housing market reflects high demand and premium prices, making affordability a challenge for many buyers.

3. Utah (8.45)
   - Utah's growing economy and quality of life have led to increased demand for housing, driving prices upwards. While the state offers various amenities and outdoor recreation opportunities, affordability remains a concern in certain areas.

4. Idaho (7.83)
   - Idaho's picturesque landscapes and growing economy have attracted attention from buyers, resulting in a surge in real estate prices. Despite its appeal as a desirable place to live, affordability issues persist in certain parts of the state.

5. Montana (7.80)
   - Montana's natural beauty and recreational opportunities make it a sought-after destination, particularly for outdoor enthusiasts. However, rising demand has led to higher property prices, posing challenges for those seeking affordable housing options.

In conclusion, the real estate market in the United States presents a diverse landscape, with some states offering affordability and value, while others pose challenges due to high demand and limited supply. Understanding these dynamics can help investors and homebuyers make informed decisions based on their priorities and financial goals. For more information on how you can explore the real estate market, reach out to us here.

Michael Elliott
Fathom Realty - Burlington Township, NJ
Burlington, New Jersey Residential Sales

Great news for Pa. people!  I just followed you, please do likewise!

May 03, 2024 03:33 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker
Great information, thanks for sharing.  I hope you have a great day.
May 04, 2024 03:22 AM